SPS Commerce (NASDAQ: SPSC) and Radiant Logistics (NASDAQ:RLGT) are both small-cap business services companies, but which is the superior investment? We will contrast the two companies based on the strength of their valuation, dividends, profitabiliy, risk, earnings, analyst recommendations and institutional ownership.

Institutional and Insider Ownership

97.7% of SPS Commerce shares are held by institutional investors. 2.8% of SPS Commerce shares are held by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company is poised for long-term growth.

Analyst Recommendations

This is a breakdown of current recommendations and price targets for SPS Commerce and Radiant Logistics, as reported by MarketBeat.com.

Sell Ratings

Hold Ratings

Buy Ratings

Strong Buy Ratings

Rating Score

SPS Commerce

0

3

7

0

2.70

Radiant Logistics

0

0

0

0

N/A

SPS Commerce currently has a consensus target price of $76.67, indicating a potential upside of 34.74%. Given SPS Commerce’s higher probable upside, analysts clearly believe SPS Commerce is more favorable than Radiant Logistics.

SPS Commerce beats Radiant Logistics on 9 of the 11 factors compared between the two stocks.

SPS Commerce Company Profile

SPS Commerce, Inc. is a provider of cloud-based supply chain management solutions, providing network-proven fulfillment, sourcing and item assortment management solutions, along with retail performance analytics. The Company provides its solutions through the SPS Commerce platform, a cloud-based product suite that manages the way suppliers, retailers, distributors and logistics firms orchestrate the sourcing, set up of new vendors and items, and fulfillment of products that customers buy from retailers and suppliers. The Fulfillment solution provides fulfillment automation and replaces or augments an organization’s existing trading partner electronic communication infrastructure, enabling suppliers to have visibility into the journey of an order and comply with retailers’ rule books and enabling the electronic exchange of information among various trading partners through various protocols. The Community Development solution provides communication programs based on its best practices.

Radiant Logistics Company Profile

Radiant Logistics, Inc. operates as a third-party logistics company, providing multi-modal transportation and logistics services. The Company is organized in two geographic operating segments: United States and Canada. Its transportation services for both the United States and Canada segments are placed into categories of freight forwarding and freight brokerage services. The Company services an account base consisting of consumer goods, food and beverage, manufacturing and retail customers, which the Company supports from a network of operating locations, as well as an integrated international service partner network. As of June 30, 2016, it provided these services through a multi-brand network, including 18 Company-owned offices. As of June 30, 2016, it had approximately 10,000 asset-based transportation companies, including motor carriers, railroads, airlines and ocean lines in its carrier network. Its brands include Radiant, Wheels, Airgroup, Adcom, DBA and Service By Air.